This ‘sample partnership agreement’ page contains a sample number of clauses taken from our partnership agreement template. Our partnership agreement template is available to download instantly for just £5.99.
3. Duties
4.1 Each Partner agrees to faithfully and diligently perform all necessary duties and functions in accordance with the Business and shall at all times use his or her best endeavours to further the Business.
4.2 Each Partner shall work for the Partnership and make himself or herself available for communication with all other Partners for [duration e.g. at least 8 hours each day between Monday and Friday inclusive] or such alternative or additional times as may reasonably be required for the proper performance of the Partner’s duties.
4.3 The primary place of work, where each Partner shall perform their duties pursuant to the Business, shall be [address or description of location].
4.4 The proper and usual books of account relating to the Partnership and the Business shall be maintained jointly by the Partners and shall be made available for inspection by any Partner at any time. Each Partner agrees to make the necessary entry in the books, and retain all necessary records, relating to all financial or accounting transactions that they may undertake or become involved with, such that the Accounts may be properly and efficiently compiled.
4.5 Accounts shall be prepared each Financial Year by [name of accountant or financial partner] within [number e.g. 45] days following the end of the Financial Year. Each Partner agrees to cooperate fully and in a timely manner for the preparation of the Accounts.
4.6 Each Partner agrees that they shall not undertake work outside of the Partnership that may amount to a conflict of interest with the Partnership, and they shall not have any interest, whether directly or indirectly, in a business that may place him or her in a conflict of interest with the Partnership. Notwithstanding, a Partner shall be permitted to hold up to a maximum of [number e.g. 5] percent of the issued shares or other securities of any class of any company whatsoever which is listed or traded on a recognised stock exchange.
7. Profit, Remuneration and Expenses
7.1 The Partners shall be entitled to a share of the Profit, and shall bear any Loss or liability, of the Partnership each Financial Year in the same proportions as the capital contributions as set out in Schedule 1.
7.2 Within [number e.g. 30] days of the end of the Financial Year, the Partners shall, by a majority [or unanimous] vote of all Partners, decide how much of the Profit may be drawn on aggregate as cash from the Partnership, which drawing shall be for each Partner in the same proportions as the capital contributions as set out in Schedule 1. Such drawing may be lower than the Partners’ entitlement to Profits if, by a majority [or unanimous] vote of all Partners, it is decided that provisions shall be made for extraordinary items, taxation, retained profit, or any other reserve. Each Partner shall be entitled to receive such drawings in cash within [number e.g. 45] days of the end of the Financial Year minus any advance drawings made in a accordance with clause 7.3.
7.3 The Partners shall be permitted to receive a drawing during the Financial Year on account of their share of any anticipated Profit, subject to the consent of a majority [or unanimous] vote of all Partners. If such total drawings, following the completion of the Financial Year, are determined to exceed a Partner’s entitlement as determined in accordance with clause 7.2 then such Partner shall repay such difference to the bank account of the Partnership within [number e.g. 60] days from the end of the Financial Year.
7.4 The Partners shall be entitled to an annual salary as set out in Schedule 1, which shall be payable [frequency e.g. monthly] in arrears on the [pay day e.g. “last Friday of each month”] and shall be subject to statutory deductions including but not limited to PAYE and National Insurance.
7.5 The Partners shall be reimbursed by the Partnership for any reasonable out of pocket expenses incurred solely in connection with the Business up to a maximum of [amount e.g. £100] per Partner per month upon the presentation of supporting receipts.
13. Indemnity
13.1 Each Partner agrees to duly and punctually pay his or her private debts and liabilities such that they may keep the Partnership, its property, the other Partners and their respective property, indemnified against all actions, proceedings, claims or demands in respect thereof.
13.2 Each Partner shall indemnify all other Partners against all actions, claims, losses, costs, damages and expenses (including without limitation, all reasonable and actually incurred legal fees, costs or expenses and any compensation, costs or disbursements paid by him or her to compromise or settle any action or claim) suffered or incurred as a result of his or her own breach of this Agreement.
The above sample partnership agreement contains clauses taken from the partnership agreement template which is instantly downloadable.